DOLLAR DEVALUATION LCI FTA NEWS 41611
Here are just some of his investment recommendations and picks:
- The three key signs that immediately preceded EVERY secular bull market in the past 100 years. None has started yet. (p. 92)
- Commodities will increase enormously as the dollar devalues and inflation gains velocity. Not all commodity investments are the same, says Skarica, who recommends one commodity index that he says will outperform all others. (p.127)
- The Great Super Cycle details the "Dow-to-gold" ratio that has never been wrong as a predictor of gold prices. Skarica believes that this ratio indicates gold will increase to more than $5,000 an ounce and has an eight-year bull market in price left in its trajectory. (p. 108)
- Why silver has become the "poor man's gold" but an equally powerful investment vehicle. (p. 123)
- The Great Super Cycle offers the best way to invest in gold, including David Skarica's top five gold mining stocks he believes will rise over 100 percent in the next several years. WARNING: avoid gold mining companies that "hedge." Skarica names them. (p. 116)
- The coming boom in natural gas. Skarica offers the two best ways to invest for great profit in natural gas. (p. 136)
- The two best "short" bond funds that will rise dramatically when the government bond bubble bursts (pp. 46-47)
- The best indicator of "maximum pessimism" that gives investors an early warning signal of when to buy and when to sell. (p. 156)
- Why China's economic growth is no bubble and the five best ways to invest in the Asian tiger. (pp. 178-180)
- And India is an even better bet for investors than China. Skarica details the best ETFs to ride the coming India wave. (p 194)
- Reposition your U.S. equity holdings: the best ETFs to invest in Australia and Canada, whose currencies will strongly outperform the dollar. (pp. 200-201)
Dollar devaluation is directly related to the size of the national debt. Currency loses it value when government is unable to pay off its debt. The amount of debt owed by the U.S. government to the banksters is unpayable. If all money owned by all American banks, businesses and individuals was rounded up and sent to the government, there would not be enough to pay off the national debt. It is mathematically impossible to pay it off.
The government tells us the national debt is somewhere around $12.8 trillion. “As shocking as that massive number is, however, it is just a fantasy — a tiny fraction of the gargantuan amount our government really owes,” writes Lorimer Wilson. “In addition to that official $12.8 trillion national debt, Washington has written $108 trillion in off-budget, unfunded IOUs on Social Security, Medicare, Medicaid, its prescription drug program, its veterans benefits programs and its Federal pension programs that must also be paid.”
Dollar devaluation is a natural response — in an unnatural fiat money system — to government debt.
Take the case of Argentina. In 2001, the Argentine peso was pegged to the U.S. dollar. Argentina, however, was unable to pay its debt in early 2002 and the peso was devalued. The result was rampant unemployment and poverty. The regime of Domingo Cavallo imposed austerity on the people (as the IMF insisted it do) and this resulted in a general strike and a state of siege against the people by the government.
In February the credit ratings agency Moody’s Investor Service warned that the U.S. is at risk of losing its AAA credit rating. “The US government may be forced to devalue the dollar if … investment rating agencies (Fitch, Moody’s, Standard & Poor’s) down-rate the value of US Treasury bonds as they should,” writes author Bill Sardi. “Government cannot meet all its obligations and promises by raising taxes on the wealthy. Its only option now is to officially devalue the dollar, probably by 30%.”
In 2008, as the engineered global financial crisis was beginning to pick up steam, trend forecaster Gerald Celente said that the dollar would eventually be devalued by as much as 90 per cent. Celente’s track record is impeccable. He successfully predicted the 1997 Asian Currency Crisis and the subprime mortgage collapse. “The consequence of what we have seen unfold this year would lead to a lowering in living standards,” notes Celente’s blog, Trends & Forecasts.
None of this is a mistake. The euro is following the dollar down the tubes. The IMF and the United Nations suggest replacing these currencies with special drawing rights (SDRs), an international reserve asset that is used as a unit of payment on IMF loans and is made up of a basket of currencies. “A new global reserve system could be created, one that no longer relies on the United States dollar as the single major reserve currency,” a United Nations report states.
During the G20 confab in 2009 plans were announced for implementing the creation of a new global currency. “There is now a world currency in waiting,” a communiqué released by the G20 stated. “The creation of a Financial Stability Board looks like the first step towards a global financial regulator” and thus a world bank as a component of one-world government.
In 2008 Obama’s Treasury Secretary Timothy Geithner said after attending a Bilderberg meeting that the Federal Reserve should play a “central role” in a new global banking regulatory framework. The banksters are diligently putting all their pieces into place.
“Ultimately, what this implies is that the future of the global political economy is one of increasing moves toward a global system of governance, or a world government, with a world central bank and global currency,” writes Andrew Gavin Marshall, “and that, concurrently, these developments are likely to materialize in the face of and as a result of a decline in democracy around the world, and thus, a rise in authoritarianism. What we are witnessing is the creation of a New World Order, composed of a totalitarian global government structure.”
Marshall notes that the very concept of a global currency and global central bank is authoritarian and removes any vestiges of oversight and accountability away from the people toward a small, increasingly interconnected group of international elites.
Marshall cites Carroll Quigley: “[T]he powers of financial capitalism had another far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent private meetings and conferences. The apex of the system was to be the Bank for International Settlements in Basle, Switzerland, a private bank owned and controlled by the world’s central banks which were themselves private corporations.”
In order for this long sought after agenda to be successful America and its currency must be destroyed. As noted by Fortune, central banks around the world are now picking up the pace in the abandonment of the U.S. dollar as the world’s reserve currency. It is part of the plan and so is the destruction of America’s middle class now underway.
“We’re going to see the end of the retail Christmas….we’re going to see a fundamental shift take place….putting food on the table is going to be more important that putting gifts under the Christmas tree,” said Celente, adding that the situation would be “worse than the great depression”.
“America’s going to go through a transition the likes of which no one is prepared for,” said Celente, noting that people’s refusal to acknowledge that America was even in a recession highlights how big a problem denial is in being ready for the true scale of the crisis.
Celente, who successfully predicted the 1997 Asian Currency Crisis, the subprime mortgage collapse and the massive devaluation of the U.S. dollar, told UPI in November last year that the following year would be known as “The Panic of 2008,” adding that “giants (would) tumble to their deaths,” which is exactly what we have witnessed with the collapse of Lehman Brothers, Bear Stearns and others. He also said that the dollar would eventually be devalued by as much as 90 per cent.
The consequence of what we have seen unfold this year would lead to a lowering in living standards, Celente predicted a year ago, which is also being borne out by plummeting retail sales figures.
The prospect of revolution was a concept echoed by a British Ministry of Defence report last year, which predicted that within 30 years, the growing gap between the super rich and the middle class, along with an urban underclass threatening social order would mean, “The world’s middle classes might unite, using access to knowledge, resources and skills to shape transnational processes in their own class interest,” and that, “The middle classes could become a revolutionary class.”
In a separate recent interview, Celente went further on the subject of revolution in America.
“There will be a revolution in this country,” he said. “It’s not going to come yet, but it’s going to come down the line and we’re going to see a third party and this was the catalyst for it: the takeover of Washington, D. C., in broad daylight by Wall Street in this bloodless coup. And it will happen as conditions continue to worsen.”
“The first thing to do is organize with tax revolts. That’s going to be the big one because people can’t afford to pay more school tax, property tax, any kind of tax. You’re going to start seeing those kinds of protests start to develop.”
“It’s going to be very bleak. Very sad. And there is going to be a lot of homeless, the likes of which we have never seen before. Tent cities are already sprouting up around the country and we’re going to see many more.”
“We’re going to start seeing huge areas of vacant real estate and squatters living in them as well. It’s going to be a picture the likes of which Americans are not going to be used to. It’s going to come as a shock and with it, there’s going to be a lot of crime. And the crime is going to be a lot worse than it was before because in the last 1929 Depression, people’s minds weren’t wrecked on all these modern drugs – over-the-counter drugs, or crystal meth or whatever it might be. So, you have a huge underclass of very desperate people with their minds chemically blown beyond anybody’s comprehension.”
IMF
IMF Managing Director Dominique Strauss-Kahn Calls for Strengthening the International Monetary System
Press Release No. 11/36
February 10, 2011
Mr. Dominique Strauss-Kahn, Managing Director of the International Monetary Fund (IMF), warned today that lack of action to reform the international monetary system could sow the seeds of the next crisis, and he called for renewed international cooperation for a better and stronger global recovery.
“Global imbalances are back, and issues that worried us before the crisis—large and volatile capital flows, exchange rate pressures, rapidly growing excess reserves—are on the front burner once again,” Mr. Strauss-Kahn said during a panel discussion on the international monetary system held at the IMF in Washington, DC. He said that “reforms to the international monetary system could both bolster the recovery and strengthen the system’s ability to prevent future crises.”
Mr. Strauss-Kahn emphasized three areas of reform in particular:
• Strengthening policy cooperation. Just as cooperation helped pull the global economy out of the crisis, Mr. Strauss-Kahn said further cooperation can now lay the foundations for more stable global growth. He pointed to the G-20’s Mutual Assessment Process (MAP)—as as an important first step toward creating more permanent frameworks for global policy cooperation—and to the IMF’s Financial Sector Assessment Programs and new reports on the spillover effects of countries’ policies on one another, as measures in train to strengthen surveillance.
• Reducing capital flow and exchange rate volatility. Countries’ policy responses to inflows of capital have an impact on other countries, Mr. Strauss-Kahn noted. He said that the Fund is looking at these issues including whether there was a need for globally agreed “rules of the road” for managing capital flows.
• Enhancing liquidity provision in times of extreme volatility. The global financial safety net has been strengthened in the wake of the crisis. Mr. Strauss-Kahn noted, for example, the introduction of the Flexible Credit Line and Precautionary Credit Line by the IMF. Another avenue worth exploring, he said, is how to “strengthen partnerships with regional financing arrangements.”
Potential Role of the SDR in strengthening the international monetary system. Over time, Mr. Strauss-Kahn said that there may be a greater role for the IMF’s international reserve asset, called the Special Drawing Right, or SDR, to contribute to a more stable monetary system. Although a number of obstacles remain in the way, increasing the global stock of SDRs could help alleviate global imbalances by reducing the need for an excessive buildup of reserves, he said. He added that issuing SDR-denominated bonds could create a potentially new class of reserve assets, and that use of the SDR to price global trade and denominate financial assets would provide a buffer from exchange rate volatility.
Mr. Strauss Kahn concluded that the reform of the international monetary system is not something academic or abstract—“It is linked to achieving the kind of well-balanced and sustainable recovery that the world needs and it is linked to preventing the next crisis.”